Overview of export activities of garment group in 2016

2016 is a bleak year for Vietnam's garment industry as its lowest growth rate in 10 years has seen export declines and the Trans-Pacific Partnership Agreement is at risk of being unapproved.

In 2017, the growth forecast for the textile and apparel industry is not bright enough. Without a breakthrough policy, the textile and garment export turnover in 2017 is forecast to increase by only 5-7% compared to 2016.

Although in the first month of 2017 textile and garment enterprises had enough goods in the first quarter with abundant orders, in the long term, the difficulties still exist due to the "resonance" of the old year. In order to achieve sustainable growth, the garment industry in general and textile and garment enterprises in particular must have solutions and directions to overcome difficulties and achieve the set objectives throughout the year.

Nguyen Dinh Lap, director of Truong Phuc Company Limited, Hung Yen, said the company's export target set for 2017 is $ 4.5-5 million. In the current difficult situation, in order to achieve this number, the company has set many solutions since the beginning of the year.

"In order to improve labor productivity and achieve the target revenue, the management has set up very specific directions. The company has invested more specialized machines to increase labor capacity. At the same time try to raise wages, bonuses and even the best treatment to attract skilled workers, ensure quality productivity meet the requirements of customers. In addition, the company will build a quality management system according to international standards, to meet the best requirements of customers, "said Mr. Lap.

Difficulties in export orders of the textile and garment industry are predicted to last until the third quarter of 2017, many experts in the textile industry that domestic enterprises need to choose approaches to expand the market. Domestic market, because now, the domestic textile market of Vietnam has a size and potential is quite large, from $ 4-5 billion. Enterprises should make full use of available advantages, focus on exploiting production capacity to increase accumulation, prepare resources for technological innovation, gradually move to exploit the domestic market.

Truong Van Cam, vice president and general secretary of the Vietnam Textile and Garment Association, said that besides the strategies of enterprises, the Vietnam Textile and Garment Association also has many optimal solutions to support enterprises.

"Every year, the industry continues to organize fairs to introduce textiles, not just in big city centers, even to remote areas, retail fairs. The Association said that the level of the sector, businesses besides the export target also not forget the domestic market, because this is a very rich market, potential, "noted Mr. Cam.

Facing a series of challenges, Le Tien Truong, General Director of the Vietnam Textile and Garment Group, said that in 2017, in order for the Vietnamese textile and garment industry to develop stably and raise its competitiveness, in the coming time, It is necessary to create a level playing field between FDI enterprises and local enterprises, and better manage investment projects in textile and garment.

Moreover, as orders are decreasing, enterprises also need to shift from outsourcing to higher value-added forms of production; Enterprises need to seek direct customers, reduce the export through intermediaries, to "buy the root, sell the tops", reduce costs to improve competitiveness, take the initiative in higher production, Export business.

Along with that, enterprises should actively seek new markets to diversify export markets, need to closely link in developing markets, restricting unfair competition.

"In 2017 market signals may be a bit brighter, especially as the US economy tends to grow better, consumer spending in the US market will hopefully improve. Textile Group set a growth rate of 6.5-7%, reaching over 30 billion USD. Achieving this result requires a concerted effort from the business as well as the State management and socio-economic infrastructure in general. In particular, the industry still has to focus on productivity, improve labor costs per unit of product, shorten service delivery time in the place as well as consolidate logistic network for countries, "he said. The school said.

In 2017, the textile and garment industry in Vietnam set a target export turnover of $ 30 billion, this is a very challenging target. Therefore, in order to overcome difficulties and achieve sustainable growth, there is no other way, each enterprise should promote internal resources, focus on technology investment, always improving product design, quality to produce. Textiles can dominate the domestic market and conquer overseas markets.